25 Best Accounting Related FAQs

Accounting related FAQs

1. What services are offered by BCL, Dubai?

BCL, Dubai, offers the below services:

• Accounting and Bookkeeping services,
• VAT advisory and filing services
• Corporate Tax advisory services
• Business Advisory services that include- Management Reporting services, Financial Planning services, Financial Forecasting services, CFO services, Budgeting services, etc.
• Compliance with Economic Substance Regulations, VAT and Corporate taxes
• Transaction advisory services including Business Valuation and Due Diligence services
• Transfer Pricing services

2. How much does an accountant cost in Dubai?

Cost of accounting in Dubai depends on the quantum of transactions and applicability of VAT. Further, the company may choose to have an in-house accountant or outsource the accounting to a service provider.  The average salary of an accountant in Dubai is AED 4,000 per month.  On the other hand, BCL Globiz, a leading consulting firm, offers reasonable accounting packages starting from AED 250 per month. Visit our website to get started.

3. How much is bookkeeping in Dubai?

Cost of bookkeeping in Dubai depends on the quantum of transactions and applicability of VAT. Further, the company may choose to have an in-house accountant or outsource the accounting to a service provider.  The average salary of an accountant in Dubai is AED 4,000 per month.  On the other hand, BCL Globiz, a leading consulting firm, offers reasonable accounting packages starting from AED 250 per month. Visit our website to get started.

4. How much does an accountant charge for?

Cost of accounting in Dubai depends on the quantum of transactions and applicability of VAT. Further, the company may choose to have an in-house accountant or outsource the accounting to a service provider.  The average salary of an accountant in Dubai is AED 4,000 per month.  On the other hand, BCL Globiz, a leading consulting firm, offers reasonable accounting packages starting from AED 250 per month. Visit our website to get started.

5. What are accounting bookkeeping services?

Accounting and bookkeeping services means identifying and recording of the financial transactions; preparing financial statements and using this information to analyze and prepare key metrics to help the business make informed decisions.

6. What is bookkeeping?

Bookkeeping encompasses recording and organizing the transactions and financial data. It includes activities such as classification of accounts, posting entries to ledgers, reconciling ledgers, managing inventory, tracking accounts receivables and payables.

7. What is accounting?

Accounting is the presentation and analysis of the financial data to equip the management to make informed decisions. It includes tasks such as preparation of financial statements, analyzing the financial data, budgeting, tax planning and compliance, implementing internal controls.

8. What is an accounting service?

Accounting is the presentation and analysis of the financial data to equip the management to make informed decisions. It includes tasks such as preparation of financial statements, analyzing the financial data, budgeting, tax planning and compliance, implementing internal controls.

9. Do I need local accountant in Dubai?

Yes, A local accountant would cost the company at least AED 4,000 per month. On the contrary, outsourcing the accounting would cost you in the range of AED 250 to 2,500 per month, depending on the complexity of the business model. Also, by outsourcing, you will be able to obtain the firms’ specialized skills and expertise without the need of training and recruiting.

BCL Globiz, a leading consulting firm, offers reasonable and affordable accounting packages starting from AED 250 per month. Visit our website to get started.

10. Which country is best for accounting?

India is the best country to find qualified accountants. With strong mathematical and analytical skills, attention to detail, adaptability and flexibility, Indians make the best accountants. An added advantage is English proficiency. Along with this the students are mentored by strong regulatory and educatory bodies like CFA, ICAI and ICSI, which allows them to think critically.

11. Do I still need an accountant if I use Quickbooks?

Quickbooks is an accounting software. On the other hand, an accountant not only records the transactions, but also ensures to comply with relevant financial regulations and reporting requirements; prepares tax returns, financial statements and other regulatory requirements; analyses the financial data to provide insight to help management to make informed decisions; identify and mitigate financial risk by implementing internal controls; develops budgets; provide recommendations for improving financial performance; ensures that financial statements are free from material misstatements.

Currently, an accounting software cannot handle all these tasks on its own and therefore, an accountant is required to ably guard the financial aspects of a business.

12. Do I still need an accountant if I use Zohobooks?

Zohobooks is an accounting software. On the other hand, an accountant not only records the transactions, but also ensures to comply with relevant financial regulations and reporting requirements; prepares tax returns, financial statements and other regulatory requirements; analyses the financial data to provide insight to help management to make informed decisions; identify and mitigate financial risk by implementing internal controls; develops budgets; provide recommendations for improving financial performance; ensures that financial statements are free from material misstatements.

Currently, an accounting software cannot handle all these tasks on its own and therefore, an accountant is required to ably guard the financial aspects of a business.

13. What is the difference between accounting and bookkeeping?

Bookkeeping involves recording, categorizing and reconciling transactions into sales, purchases, payments, receipts, journals etc. While accounting involves interpreting, analysing and summarizing financial data into financial statements, budgets, forecast that aids in financial decisions. In short, where bookkeeping ends, accounting process starts.

14. What is better Quickbooks or Zohobooks?

Both the accounting software provides comprehensive set of suitable features for various business types and sizes. They both provide user-friendly interface. However, the following points could be the differentiator between the two software.

• Zohobooks offer free version for very small businesses with limited features. Whereas, Quickbooks includes monthly subscription, with additional costs for add ons. Therefore, very small businesses could opt for Zohobooks.
• Quickbooks pricings starts from AED 66.105/month and Zohobooks pricing starts form range of AED 60/month, making Zohobooks less expensive.
• Another feature Zohobooks has over Quickbooks is the transaction approval feature. This approval mechanism is effective to maintain the hierarchy of the finance department in an organization.
• Above all, Quickbooks recently closed down its operations in India. While they are still operative in other countries, it is worth noting this factor as the management might have to bear additional costs in migrating all the data if the company whose software they have chosen closes its operations.

Considering all the above points, Zohobooks is more affordable for small to medium scale businesses.

15. What is better Quickbooks or Xero?

Both the software provides comprehensive set of suitable features for various business types and sizes. However, the following points could be the differentiator between the two software.

• Quickbooks ia available in online and desktop versions. Up to 40 users can be allowed to access Quickbooks (for its highest plan). On the other hand, Xero offers unlimited user access.
• Quickbooks pricings starts from AED 66.105/month and Xero starter pack costs AED 106.50/month, making Quickbooks less expensive.
• Quickbooks offers more intuitive interface than Xero. This is because Quickbooks was designed for small and medium scale businesses.
• Xero is popular in US and UK. However, outside these countries, accountants prefer Quickbooks.

Therefore, Quickbooks is a better choice for businesses with medium scale of operations. And Xero is better for entities requiring unlimited number of users.

16. What are the services of Bookkeeping?

Bookkeeping encompasses recording and organizing the transactions and financial data. It includes activities such as classification of accounts, posting entries to ledgers, reconciling ledgers, managing inventory, tracking accounts receivables and payables.

17. What exactly does bookkeeper and accountants do?

An accountant records the transactions, ensures to comply with relevant financial regulations and reporting requirements; prepares tax returns, financial statements and other regulatory requirements; analyses the financial data to provide insight to help management to make informed decisions; identify and mitigate financial risk by implementing internal controls; develops budgets; provide recommendations for improving financial performance; ensures that financial statements are free from material misstatements.

18. Is accounting mandatory in Dubai?

Accounting may not be explicitly made mandatory in Dubai. But here are the reasons to maintain books of accounts:

• Accounting is required to determine the profits or losses, track the expenses, follow up the outstanding receivables from customers, payment of the pending bills. By accounting, management will be able to draw profit and loss statements, balance sheet, cash flow statement etc which are helpful in future decisions.
• VAT law requires filing of quarterly returns. Maintaining the accounting helps a firm to file the VAT returns accurately.
• Accounting also helps to determine the applicability of VAT and Corporate Tax.
• in certain cases, audit is made mandatory due to which the companies are required to maintain books of accounts. A few instances where audit is mandated are given below-
  • Joint Stock Companies, Large private companies, public shareholding companies, branch of foreign companies etc.
  • Some of the freezones require the businesses to submit the audited financials while renewing their trade licenses. Such as DwC, DAFZA etc
  • Banks and other financial institutions in Dubai insist on submitting audited financials
  • Audit report is required to obtain Golden Visa
  • Corporate Tax Law also mandates certain companies to get their books audited

19. How do I keep track of my income and expenses?

An accountant may help you in recording the transactions. Thus, helping the management to determine the income, expenses, profits or losses. However, an accountant would cost you at least AED 4,000 per month. On the contrary, outsourcing the accounting would cost you in the range of AED 250 to 2,500 per month, depending on the complexity of the business model.

BCL Globiz, a leading consulting firm, offers reasonable and affordable accounting packages starting from AED 250 per month. Visit our website to get started.

20. How do accountants calculate fees?

An accountant may determine their salary based on the salaries offered in the market by competitors or other industry. Whereas an outsourced accounting firm is just like any other business. They incur rent, payroll costs, other overheads. The professional fees are computed based on the volume of the data and allocation of resources.

21. What are the fees of BCL?

BCL Globiz, a leading consulting firm, offers the best of accounting practices at affordable and reasonable pricing, as below:

• Annual package for AED 250 per month (AED 3,000 billed annually) up to 40 transactions per quarter. This is suitable for companies who have not obtained VAT registration.
• Special packages:
  • Start-up Package 1 – AED 375 per month (AED 1,125 billed quarterly) up to 40 transactions per quarter, and
  • Start-up Package 2 – AED 500 per month (AED 1,500 billed quarterly) for 120 transactions per quarter.
  • These packages include VAT compliance and data to be shared on quarterly basis.
• Monthly package: This includes monthly accounting, VAT compliance, preparation of monthly reports, and business advisory services. Pricing starts from AED 800 per month and depends on the quantum of transactions and may go up to AED 2,500 per month.

22. Affordable accounting packages in Dubai?

BCL Globiz, a leading consulting firm, offers the best of accounting practices at affordable and reasonable pricing, as below:

• Annual package for AED 250 per month (AED 3,000 billed annually) up to 40 transactions per quarter. This is suitable for companies who have not obtained VAT registration.
• Special packages:
  • Start-up Package 1 – AED 375 per month (AED 1,125 billed quarterly) up to 40 transactions per quarter, and
  • Start-up Package 2 – AED 500 per month (AED 1,500 billed quarterly) for 120 transactions per quarter.
  • These packages include VAT compliance and data to be shared on quarterly basis.
• Monthly package: This includes monthly accounting, VAT compliance, preparation of monthly reports, and business advisory services. Pricing starts from AED 800 per month and depends on the quantum of transactions and may go up to AED 2,500 per month.

23. Which firm offers affordable accounting in Dubai?

BCL Globiz, a leading consulting firm, offers the best of accounting practices at affordable and reasonable pricing, as below:

• Annual package for AED 250 per month (AED 3,000 billed annually) up to 40 transactions per quarter. This is suitable for companies who have not obtained VAT registration.
• Special packages:
  • Start-up Package 1 – AED 375 per month (AED 1,125 billed quarterly) up to 40 transactions per quarter, and
  • Start-up Package 2 – AED 500 per month (AED 1,500 billed quarterly) for 120 transactions per quarter.
  • These packages include VAT compliance and data to be shared on quarterly basis.
• Monthly package: This includes monthly accounting, VAT compliance, preparation of monthly reports, and business advisory services. Pricing starts from AED 800 per month and depends on the quantum of transactions and may go up to AED 2,500 per month.

24. What is the difference between invoice and tax invoice?

An invoice is a document issued by the supplier of service to his customers. However, as per VAT law, once the business crosses the threshold limit of AED 375,000, it would be liable to obtain VAT registration and must start issuing tax invoice.

A normal invoice may contain:

• Name and address of the supplier
• Name and address of the recipient
• A unique sequential invoice number to be updated
• Date of invoice
• Description of services along with unit price and volume/Qty
• Amount payable in AED

Whereas the tax invoice must also have all the above contents with additional requirements stated below

• The words “Tax invoice”
• VAT TRN of the supplier
• VAT TRN of the customer, if registered
• Amount payable and VAT charges in AED
• Clear breakup of the VAT charges and its percentage

25. What do you mean by financials?

Financials are the records a business keeps about income, expenses, investments, debts, and any other relevant information related to money. Financials generally includes Profit and loss statement, Balance sheet, its schedules, notes, and cash flow statements. These statements indicate the financial position of the business for the given period.